Category Archives: Useful Info

Tax Package Mailing for Individuals to End Following Growth of e-File

Individual and business taxpayers will no longer receive  paper income tax packages in the mail from the IRS. These tax packages contained the forms, schedules and instructions for filing a paper income tax return.

The IRS is taking this step because of the continued growth in electronic filing and the availability of free options to taxpayers, as well as to help reduce costs. In early October, the IRS will send a postcard to individuals who filed paper returns last year and did not use a tax preparer or tax software. The information will explain how to get the tax forms and instructions they need for filing their tax year 2010 return. The forms and instructions will be available in early January 2011.

To efile an automatic extension of Time to file an Individual and Business Income Tax returns or Exempt Business Income Tax returns please visit www.ExtensionTax.com

To efile Excise Tax Forms [2290, 8849 & 720] please visit www.TaxExcise.com

For any further in formation or Help please reach our Customer Support Line 1-866-245-3918 or write to us support@TaxExcise.com

Who Can Take a Credit for Federal Tax Paid On Fuels?

Final purchasers, and in some cases, ultimate vendors of certain types of fuels may be able to claim a refund or credit for the federal excise tax that applies on the fuel if it is for specific nontaxable uses, such as on a farm, for off-highway business use, for commercial fishing, in certain types of intercity, local, and school buses, and for exclusive use by a non-profit educational organization.

A credit can be taken for U.S. federal Income tax purposes for certain non-taxable use of fuels.  This credit can be claimed on Form 4136, Credit for Federal Tax Paid on Fuels, filed with the annual federal income tax return.  Certain taxpayers may be entitled to claim a periodic refund for the federal excise tax on fuels, by filing Form 8849, Claim for Refund of Excise Taxes.  A credit can also be claimed on Schedule C of Form 720, Quarterly Federal Excise Tax Return, if a liability for excise taxes is reported on that form. Continue reading →

Are you putting your Heavy Vehicle for Sale?

Putting your Truck Sales for Sales?

If you sell a heavy vehicle while under suspension, a statement must be given to the buyer and must show the seller’s name, address, and EIN; VIN; date of the sale; odometer reading at the beginning of the period; odometer reading at the time of sale; and the buyer’s name, address, and EIN. The buyer must attach this statement to Form 2290 and file the return by the last day of the month following the month the vehicle was purchased.

If, after the sale, the use of the vehicle exceeds the mileage use limit (including the highway mileage recorded on the vehicle by the former owner) for the period, and the former owner has provided the required statement, the new owner is liable for the tax on the vehicle. If the former owner has not furnished the required statement to the new owner, the former owner is also liable for the tax for that period.

Proof of payment for state registration

Proof of payment for state registration

Generally, states will require verification of payment of the tax for any taxable vehicle before they will register the vehicle.

Use the stamped copy of Schedule 1 as proof of payment when:

* Registering vehicles with the state, or
* Entering a Canadian or Mexican vehicle into the United States.

If you do not have the stamped copy, you may use a photocopy of Form 2290, Schedule 1, and both sides of your canceled check as proof of payment.

IRS stamped Schedule 1 copy:

In efiling service the Schedule 1 copy will have IRS efile watermark, with received date. This is the valid Schedule1 copy from IRS and accepted across states for registration and proof of payment.

In paper return the schedule 1 copy will be stamped as paid by IRS.

Starting in 2011, Many Paid Preparers Must e-File Federal Income Tax Returns for Individuals, Estates and Trusts

WASHINGTON — The Internal Revenue Service today detailed how, starting Jan. 1, 2011, paid tax return preparers can comply with a new law that requires paid tax return preparers who meet the definition of “specified tax return preparer” under the new law to electronically file (e-file) federal income tax returns that they prepare and file for individuals, trusts and estates.

The e-file requirement will be phased in over two years. Continue reading →